Energy Efficiency Startup Redaptive Raises $200 Million From CPPIB

Redaptive raised $200 million from the Canada Pension Plan Investment Board after withdrawing its plan for a US initial public offering.

A person with knowledge of the matter said that the company was valued at close to $1 billion.

Some existing investors, including Linse Capital and CB Richard Ellis, will be participating in the investment. Early next year, the company is expected to announce a second closing.

Even though Redaptive tabled its IPO, Arvin Vohra said the company's growth trajectory is very attractive.

He said it was a great time for Redaptive.

A representative for Redaptive wouldn't discuss the company's valuation.

Last year, Redaptive filed with the SEC. The company reported a $35 million net loss on $68 million in revenue.

Vohra said that the company could go public in a couple of years.

A startup gets a lot of money to cut carbon in buildings.

The software and meters used by Redaptive take a snapshot of the energy usage. New equipment, such as lighting or air conditioning, can be installed. Customers are charged based on the savings in energy bills when the equipment is owned and operated by the company. Vohra said the operation was a repair or replace model.

As the industry scrambles to curb carbon emissions, his business is one of several upstarts. There are ways to upgrade lighting, heating and cooling, and water services at Redaptive. Vohra said the company is working on adding features.

In a filing, Redaptive said that it had installed over 3000 project upgrades at 2,400 customer facilities. The number of customer facilities has gone down.